Glossary

Glossary

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A

Activity fees*

A fee is an activity fee if:

  1.  the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee:
    1.  that is engaged in at the request, or with the consent, of a member; or
    2.  that relates to a member and is required by law; and
  2.  those costs are not otherwise charged as an administration fee, an investment fee, a buy sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

* Water Corporation Superannuation Plan does not charge Activity Fees.

Administration fees

An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:

  1.  relate to the administration or operation of the entity; and
  2.  are not otherwise charged as an investment fee, a buy sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Advice fees

A fee is an advice fee if:

  1.  the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by:
    1. a trustee of the entity; or
    2.  another person acting as an employee of, or under an arrangement with, the trustee of the entity; and (b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

B

Buy-sell spreads

A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. The buy/sell spread can range between nil and 0.7% of the asset being bought or sold. These costs are paid at the time of buying or selling the asset and are deducted from investment earnings before returns are allocated to your account. Transactional and operational costs are passed on as an additional cost to members.

E

Exit fees

An exit fee is a fee to recover the costs of disposing of all or part of members' interests in the superannuation entity.

I

Indirect cost ratio

The indirect cost ratio (ICR), for an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the investment option, to the total average net assets of the superannuation entity attributed to the investment option.

Note: A dollar-based fee deducted directly from a member's account is not included in the indirect cost ratio. The ICR differs depending upon your chosen investment option(s).

Investment fees

An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

  1.  fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
  2.  costs incurred by the trustee of the entity that:
    1.  relate to the investment of assets of the entity; and
    2.  are not otherwise charged as an administration fee, a buy sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Please note that performance fees are included in the ICR if any are applicable.

S

Switching fees

A switching fee is a fee to recover the costs of switching all or part of a member's interest in the superannuation entity from one class of beneficial interest in the entity to another.